#47 Angelinvesting.it - From idea to Series A - Weekly Newsletter

Dec 09, 2023

"The Innovator's Dilemma" has now become a classic in business school literature worldwide. The main thesis is that management, even when making seemingly correct decisions, can paradoxically lead the company it manages towards failure.
This scenario becomes a reality when a disruptive technology emerges. This kind of technology, whether adopted or not, can determine the fate of a company. Adopting emerging technology involves disrupting consolidated revenue streams, a daunting and challenging task.
Today, Google is facing a similar challenge. Its dominance in the world of search is being questioned by the success of ChatGPT.
Google's business model is relatively straightforward: following a search, users find a series of navigable blue links, some of which are sponsored. Companies pay for visibility on that page to attract potential customers.
With the advent of ChatGPT and other intelligent agents, this user experience seems obsolete. Why should we search and manually select when an intelligent agent can discover information for us, providing exactly what we need?
Technologies that have triumphed over time are those that have managed to eliminate intermediaries. Now, Google might be the next intermediary that needs to kindly step aside.

“Search is going to be replaced by agent led information discovery” Brad Gerstner

While writing this newsletter, an incredible event occurred. The newsletter's concept originated from rumors that Google's CEO postponed key events to 2024.
These events were supposed to feature the launch of Gemini, a much-anticipated yet unreleased Google model. The postponement made me ponder the business challenges in releasing a product that could disrupt its own business model.
On Wednesday, Google made a significant move. They released a video showcasing Gemini performing extraordinary feats, more akin to magic than technology, reminiscent of Jarvis interacting with Iron Man. This caused a sensation on the web.
However, the initial excitement was dampened by revelations. The video had been extensively edited, and the workflow presented differed significantly from the actual capabilities of the released product.
Currently, Google faces a barrage of external criticism and internal company controversies. This situation exemplifies the innovator's dilemma in its most profound form.

You can thank Jennifer Lopez for the creation of Google Images. The image search engine came into existence after Lopez wore ‘that’ dress to the 2000 Grammy Awards.
Google confirmed: “Googling “Google" will not break the web.

Have a great weekend,

Simone

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